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D I V I S I O N OF I N T E R N A T I O N A L F I N A N C E BOARD OF GOVERNORS F E D E R A L R E S E R V E SYSTE H . 13 No. 297 May 3, 1967 CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures. Plotted in H.13 Chart Series, 1967 I. Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Ten Charts on Financial Markets Abroad 1 - New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds 2 - London: Yields for U.S. Dollar Investors on 3-month Funds 3 - Interest Arbitrage: Frankfurt/London, Zurich/London 4 - Interest Arbitrage: N e w York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-term Interest Rates 7 - Long-term Bond Yields 8 - Spot Exchange R a t e s — M a j o r Currencies Against U.S. Dollar 9 - 3-month Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW Y O R K , L O N D O N , MONTREAL: Y I E L D S FOR U . S . D O L L A R I N V E S T O R S O N 3 - M O N T H F U N D S DOLLAR DEPOSIT RATES: N E W Y O R K - L O N D O N EURO-DOLLAR DEPOSIT " U . S . CERTIFICATE OF DEPOSIT f EURODOLLAR OVER ! U.S. CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES ( c o v e r e d ) : Q U O T E D IN NEW YORK U.K. HIRE PURCHASE L O N D O N : YIELDS EURO-DOLLAR FOR DEPOSIT U.S. DOLLAR INVESTORS O N 3 - M O N T H 30 180 90 HIRE PURCHASE AND FUNDS RATES DAY DAY DAY LOCAL AUTHORITY HIRE. DEPOSIT RATES (covered PURCHASE LiJR-j COLLAR DEPOSIT FAVOR FAVOR n TO ! LAP PURCHAM E'JRC 00' ! «» DEPOSIT LOCAL AUTHORITY ^ i - C E N T l A L HIRt DEPOSIT FAVOR LOCAL FAVOR 1966 1967 EURO AUTHORITY DOLLAR i I INTEREST A R B I T R A G E : F R A N K F U R T / L O N D O N , Z U R I C H / L O N D O N FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE ( C O V E R E D ) INTERBANK LOAN RATE EURO-DOLLAR 2 DIFFERENTIAL FAVOR F R A N K F U R T FAVOR EURO-DOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE ( C O V E R E D ) EURO DOLLAR SWISS DEPOSIT RATE n PRICE OF G O L D I N L O N D O N INTEREST A R B I T R A G E , 3-MONTH UNITED TREASURY STATES/CANADA BILL RATES CAN. FIN. CO. PAPER CANADA | UNITED STATES j BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN DOLLAR SPREAD IN FAVOR OF CANADA FORWARD RATE 3-MONTH COVERED RATE D I F F E R E N T I A L S DISCOUNT (NET I N C E N T I V E S ) PRIME FINANCE PAPER FAVOR U . S . FAVOR CANADA ~ TREASURY BILLS FAVOR U.S. M S 0 1964 M J 1965 S D M 1 1966 S D M S 1967 0 INTEREST A R B I T R A G E , 3-MONTH TREASURY NEW BILL YORK/LONDON RATES U.K. LOCAL AUTHORITY DEPOSITSI LONDON / V NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING SPREAD IN FAVOR OF LONDON V\ yx/W DISCOUNT FORWARD RATE \j\ I RATE D I F F E R E N T I A L WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN FAVOR OF LONDON IN FAVOR OF NEW YORK 1964 1965 j 1966 1967 S H O R T - T E R M INTEREST RATES * EURO DOLLAR - LONDON + SWITZERLAND ond Germony (interbank Jiscou nts; , LONG-TERM B O N D YIELDS NETHERLANDS CANADA SWITZERLAND GERMANY EURO 1963 1964 1115 Averege ef yields For four foreign government dollor bonds quoted in lemdom New series for Germony storts 7 9 65 DOLLAR 1966 BONDS 1967 SPOT E X C H A N G E RATES - M A J O R CURRENCIES A G A I N S T I U.S. DOLLAR SWI SS FRANC / / v GERIMAN MARK i kxjA^j 1r y / v ^ / v " / A \ / / U.K. STERLING ; ! L ! 1 1 1 FR ENCH FRANIC~ I V v - . - 1 I : - «n, r\ / BE LGIAN FKAH \ % i : V \ i/ V ' V ~~~ / V - V' ! OU TON GUILD!:* | . i 1 CANADIAN DOLLAR ITALIAN LIRA M i 1965 S D M J 1966 S D M 1967 j \° 3-MONTH AGAINST Friday figures FORWARD U.S. EXCHANGE DOLLARS —NEW RATES YORK PREMIUM GERMAN MARK I SWISS FRANC I V POUND STERLING DISCOUNT— T 2 PREMIUM DUTCH GUILDER FRENCH FRANC T CANADIAN DOLLAR DISCOUNT- A G A I N ST P O U N D Friday figures STERLING — L O N D O N Pi PREMIUM SWISS FRANC / ; H - M ; GERMAN MARK U.S. DOLLAR DISCOUNTJ S D 1964 M J 1965 S D M J 1966 S D INDUSTRI AL STOCK INDICES ,958,00 360 320 280 SWITZERLAND 240 200 | GERMANY 160 120 360 320 280 JAPAN 2 4 0 200 CANADA 100 12# 1964 1965 Swiss l«nk Corpor ol«on mduifnoi if o C k index Jenen: index of 2 2 5 m du Umo I end other itocki iroded on rhe Tokyo exchange 1900 1917 H. 13 No. 297 II. Upper Panel Latest Figures Plotted in H. 13 Chart Series, 1967 (all figures per cent per annum) Chart 1 (Wednesday. Euro-$ deposit 4,.68 U.S. certif. of deposit 4.•35 Lower Panel (Friday, ) April 28 Finance co. paper: U.S. Canada Hire-purchase paper, U.K. Chart 5 (Friday, April 28) ) April 26 Treasury bills: 5.,30 3. 68 + 1. 62 Forward pound -0.^9 Net incentive (U.K. + ) +0. 63 4. 38 4. 80 4, §2 Chart 6 (Friday, April 28) Treasury bills: Euro-$ deposits: 4.32 4.69 U.K. U.S. Spread favor U.K. Chart 2 (Friday, April 2 8 ) Call 30-day May 3, 1967 90-day 180-day 4. 62 4. 75 Hire-purchase paper (April 21) 4. 90 Local-authority deposit (April 21) Chart 3 Upper Panel (Period: April 24-30 4. 84 U.S. U.K. Canada 3. 68 5.30 3,91 Interbank loan rate (German) (April 24-31) Euro-$ deposit (London) Zurich 3-month deposit (Date: March 15 Japan composit rate (Date: 4.17 4.62 4.50 ) 7.35 Interbank loan (mid-point) 4. 17 Euro-$ deposit (average) 4.f U.S. Gov't. (Wed., April 26 U.K. War Loan (Thurs., Apr. 27) 6.44 Zurich 3-month deposit 4.50 German Fed. ) 6. 86 Price of gold (Friday, April 21 35.184 ) 4. 29 Canadian Gov't. (Wed. ,April 26) 5. 63 Lower Panel (Date: March 15 Forward Canadian $ Swiss Confed. (Fri.,April 21 ) Chart 4 (Friday, April 28 Canada U.S. Spread favor Canada (Fri. , April 28 ) Treasury bills: ) Netherlands Gov't, perpetual 3% (Friday, April 21 ) 5.46 3. 68 +0. 23 Euro-$ bonds (Fri. , April 28 6. 13 -0. 13 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966. 3.91 Net incentive (Canada + ) Canadian finance paper 4. 68 4.6 )
@FedFRASER